Is Ray Dalio being honest now that he's made billions more for himself and his investors the last decade?
Fed officials say tapering is near, advancing discussion on rate hike https://finance.yahoo.com/news/feds-b...
So while Fed governors are supposedly preparing to taper and hike rates, retired billionaire hedge fund manager Ray Dalio says that the Fed can't taper QE or hike interest rates, without crashing asset prices or causing hedge funds to fail.
Ray Dalio says Fed can't tighten 'without having big, negative effect' on markets https://www.marketwatch.com/story/ray...
Which is ironic considering how back in 2012 it was Ray Dalio who wrote the "beautiful de-leveraging" white paper and recommended nominal GDP targeting and asset price inflation of stocks, bonds and real estate for the Fed and ECB.
Ray Dalio On Why The U.S. Is Undergoing A Beautiful Deleveraging https://seekingalpha.com/article/7003...
Dalio even bragged in his book, Principles, how he got private meetings with Fed Chairman Ben Bernnke and Janet Yellen and also with the former head at the ECB at that time Mario Draghi.
Dalio's company, Bridgewater was also bailed out in the 2019 Repo Madness fiasco as they were caught on the wrong side of the trade with their risk parity and basis trades as the Fed was raising rates and tapering back then. Now, the leveraged short vol trade, risk parity and basis trades are even more over crowded than before.
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Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.